Page 2 - TPM Newsletter JAN 2020

2 January 2020
From the President ... Introducing the SECURE ACT

Welcome to 2020. The TPM Staff V In late December 2019, President Trump signed into law the
and I hope you had a wonderful Se ng Every Community Up for Re rement Enhancement
holiday season! We are off and Act of 2019 (SECURE Act) as part of the Further Consolidated
running into the new year with Appropria ons Act, 2020 (H.R. 1865). The SECURE Act
exci ng news.
introduces the most signifi cant changes to workplace re rement
This year the TPM Trust will be plans in over a decade. Some highlights of the Act include:
implemen ng an online benefi ts V Creates Employer Automa c Enrollment Tax Credit - The
administra on system called the SECURE Act creates a new tax credit of up to $500 per year for
TPM Trust Employer Portal. Your
Adam Molenda three years to employers to defray startup costs of new plans
company’s Trust Contact person
President that include automa c enrollment. The credit is also available
will be able to complete online
enrollments, termina ons and changes on-line, to employers that convert an exis ng plan to an automa c
reducing the need to send in paper forms. Members enrollment design. This credit is in addi on to the startup
who a ended TPM’s “Focus on 2020” presenta on re rement plan tax credit (below).
featuring the new Trust Employer Portal in December
V Increases Employer Startup Re rement Plan Tax Credit - The
will be the fi rst par cipants to be trained in the pro- U.S. Government off ers a tax credit to off set small business
cess. TPM staff will be contac ng the par cipa ng re rement plan startup costs. The SECURE Act increases the
Trust companies soon to schedule training.
credit from $500 per year up to $5,000 per year for three years.
Another new product for TPM Trust par cipants The maximum credit is now $15,000 over three years.
will be Teledoc, available in April 2020. The Teledoc
V Increases Late Filing Penal es - Under the SECURE Act, the late
program will allow covered pa ents to be in touch fi ling penal es for Form 5500 are increased to $250 per day,
with a physician online or via their phone. Much like
a nurse hotline, but with the ability to see the Doctor not to exceed $150,000. Also, late fi ling of Form 8955-SSA is
on screen where he can take care of the pa ent’s increased to $10 per par cipant per day, not to exceed $50,000.
needs without having to leave home. Being able to V Increases Required Minimum Distribu on (RMD) Age - A
off er this to our par cipants is a great opportunity. Required Minimum Distribu on (RMD) Age is required from
All TPM Trust member companies will need to assist re rement plans a er par cipants reach a certain age. The
us in promo ng the program to their employees.
SECURE Act increases the RMD age from 70½ to 72. This is
In the coming weeks, TPM staff will be reques ng an applicable to distribu ons made a er December 31, 2019 for
updated list of par cipa ng Trust employees with individuals who reach 70½ from January 1, 2020 on. Equally
their emails. The Trust will send each par cipant signifi cant, the SECURE Act enables workers age 70½ and older
the informa on so they can setup their own Teledoc with earned income to contribute to individual re rement
account. Feel free to be proac ve and send a list of accounts (IRAs). Previously, this was not allowed.
your company’s enrolled TPM Trust par cipants’
emails to Darla Kalloch at dkalloch@tpmrs.com. V Introduces Pooled Employer Plans - The SECURE Act allows
unrelated employers to band together in pooled employer
TPM is also modifying its current Employment Law plans (“PEPs”). By banding together in PEPs, a re rement plan
services and adding some Business Law assistance can scale much larger than it could with only one par cipa ng
for the Execu ve Management Team at your com- employer. Scale off ers PEPs the poten al for reduced
pany. If you have a business legal ma er you need administra ve costs and du es for par cipa ng employers.
assistance with please feel free to contact us. We are
always here to assist. V Requires Coverage of Long-term Part Time Employees - The
SECURE Act requires employers to include long- me part- me
Once again, welcome to 2020 and we are always workers in defi ned-contribu on plans. Eligible employees must
here to serve our members!
have at least 500 annual hours of service for three consecu ve
years, and be age 21 or older. However, these par cipants can
The Newsle er is not intended nor designed to
off er legal advice. For addi onal informa on about be excluded from safe harbor contribu ons, nondiscrimina on
Newsle er topics, please contact TPM. Annual and top-heavy requirements. Also, excep ons to this new
subscrip on price $195. requirement are made for collec vely bargained plans.
© 2020 TPM - Timber Products Manufacturers Previously, part- me workers could be excluded if they have not
Associa on
951 East Third Avenue, Spokane, WA 99202 worked 1,000 hours in a 12-month eligibility period.
Phone: (509) 535-4646 If you have ques ons, or if you would like to consider
Toll Free: (877) 535-4646 implementa on or changes to your employee re rement plan,
E-mail: tpm@tpmrs.com
contact the TPM offi ce.
Timber Products Manufacturers Associa on